Target Exam

CUET

Subject

Business Studies

Chapter

Organising

Question:

Identify the advantages of formal organization from the options given below.

(A) It is easier to fix responsibility since mutual relationships are clearly defined.
(B) There is no ambiguity in the role that each member has to play as duties are specified. This also helps in avoiding duplication of effort.
(C) It helps to fulfill the social needs of the members and allows them to find like minded people. This enhances their job satisfaction since it gives them a sense of belongingness in the organisation.
(D) Unity of command is maintained through an established chain of command.

Choose the correct answer from the options given below:

Options:

(A), (B) and (D) only

(A), (B) and (C) only

(A), (B), (C) and (D)

(B), (C) and (D) only

Correct Answer:

(A), (B) and (D) only

Explanation:

The correct answer is Option (1) → (A), (B) and (D) only

(C) Fulfilment of social needs → This is an advantage of informal organization, not formal.

Advantages of Formal Organization:

  • (A) Fixing responsibility → Since authority–responsibility relationships are clearly defined, accountability is easier.

  • (B) No ambiguity of roles → Duties are specified, avoiding confusion and duplication of efforts.

  • (D) Unity of command → Maintained through a proper chain of command.